Pros and Cons of Using Binary Options Robots

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Ok, so you are a trader on forex, binary options or any other trading market but you haven't yet reached the point where you have your own well-working strategy. The step you may want to take is the automation of the trading process. Then the usage of binary options signals can be the right solution to you. You might earn money minding your own business somewhere on a tropical island, while a trained robot would be making decisions based on a trading algorithm for you. That's the ideal scenario. But lets take a closer look at the topic.

What are these Binary Options Robots?

In simple words, it is software tied to the brokers platform. It can make deals without your presence, but consulting the guidance of more experienced traders, for example, that comes in the form of signals. These robots can be great helpers, doing the easy routine work for you. But who sends these signals? They can be developed from a bunch of traders executing their trades or by companies making algorithms that analyze financial markets. They come in form of sms, e-mails or pop-ups and usually include typical information: name of the asset, direction of the trade, entry price etc.

Pros:

The first advantage is obvious - you need to rest from time to time, the robot doesn't. That means he's performing a day-and-night trading process without breaks. In binary options there's no need to exit the trade manually, as the option simply expires at a set time.

No emotions, only business. The robot will be only guided by a strict set of parameters, excluding some personal preferences. No fatigue-based errors involved as well.

The robot is faster than any person. It is especially relevant for the trades that have strict time limits.

You can find a cheap binary signal service or even a free one. The thing is that there is no drastic income difference between the expensive and cheap options.

You're free to choose between the signal providers, concerning their frequency, as you're not limited only to those who give a small enough signals for you to be able to keep track - the robot does the work for you.

Cons

As the 'bot' has to be tied to the trader's account - it means that some person can relatively easily also get access to this information (your personal details and even bank account).

The robot itself. It is not a human being. The absence of a creative mind and the blind following of the strict set of parameters can be considered as a risk, when trying to make decisions in an out-of-the-scenario situation.

If you have your own strategy and a prediction system for trading - forget about an automated option. Having a binary options robot is always a risk. But if you trust the signal provider enough - just let it do it's job. If you choose a high quality signal service, the ROI (Return On Investment) could range anywhere between 2% to 30% per month, but it is never excessive to control the work of the 'bot' by yourself.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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